Manchester City Financial Report Shows Complete Madness

Manchester City today reported record losses of £121.3M.

Gary Cook – Manchester City CEO – overspending up the kazoo

City’s revenues are said to have increased by over 40% to £125M, which is fairly good, but this has been completely outweighed by the total wage costs which have reached a staggering £133.3M.

That is a £50M rise on a year ago, and to think that a company is paying out more in wages than it brings in in revenues,  is  completely outrageous to any educated financial person.

The Eastlands club are of course being bankrolled by Abu Dhabi-based owner Sheikh Mansour – and it’s a good job too, and that’s the only reason they can do what they have been doing with their financial books, since he took over a couple of years ago – and it should not be allowed.

Yes, Chelsea did the same thing many years ago and that shouldn’t have been allowed either, and the sooner the fair play rules from UEFA are introduced to stop this madness – the better it will be – and more clubs will be saved from bankruptcy.

Let’s be honest, this financial report would not be tolerated in any sane business, where the purpose of creating a business is to make a profit – any profit.

Manchester City chief executive Garry Cook said the losses “should come as no surprise” but that the club would now scale back on new signings.  Well that’s a relief we suppose – and presumably Garry  means the club are going to stop spending money they just don’t have.

This is what Cook said today:

“It is safe to say that player acquisitions on the scale we have seen in recent transfer windows will no longer be required in the years ahead now that we have such a deep and competitive squad.”

“In 2009-10, we narrowly fell short of our goals on the pitch, but still achieved nine club records including our best-ever result in the Premier League.”

The annual report shows the club’s net spending (not total spending mind you),  on transfers has totaled £403M since 2008, and they’re still only in 4th position in the league – oh well – money can’t buy me love and I suppose it cannot buy a top football team either.

And to think Newcastle have bought 9 players for just £9M this year – and let’s see how our lads do against these players on Sunday – that should be one huge incentive for the Newcastle players this weekend.

Some good news for City is their revenues have risen to £125M, and that is due to a large increase in commercial income, from £87m to £125m.

That’s something owner Mike Ashley is also trying to do at Newcastle,  where the Magpies’  revenues in the Championship last year went from £86M the season before, to around £38M, but should be back nearer £100M this season – hopefully.

The Manchester  club is also looking at possibly expanding their Eastlands stadium, but tickets are still available for the game against Newcastle United on Sunday afternoon, so they should first ensure they have the demand, before they invest even more money in the club.

Happily, this insane spending by Premier League clubs will not be allowed to continue much longer, as the UEFA’s new financial fair play rules will come into effect shortly, and then essentially a club can only spend what it takes in.

Well what a concept that is – especially for PL clubs.

The English PL clubs have shown complete stupidity in their financial dealings for many years, to be sure, and if  the financial people running some of these clubs were in real businesses, not fake ones where billionaires are involved on the outside, they would have been fired many moons ago.

The sooner the Premier League clubs are forced to run their clubs like proper businesses,  the better it ill be for all concerned, and the new fair rules to be introduced by UEFA are many years overdue.

Comments welcome.

20 comments so far

  • GeordieToon89

    Oct 1, 2010 at 7:34 PM

    Comment #1

    spent all that money and the manager still doesnt think they good enough ha.!! great stuff

  • Howay The Lads

    Oct 1, 2010 at 7:40 PM

    Comment #2

    I’d love to see them go bankrupt and put them is the deep stuff for a fair few years

  • Howay The Lads

    Oct 1, 2010 at 7:41 PM

    Comment #3

    I do quite like their fans though 😀

  • geoff777

    Oct 1, 2010 at 7:52 PM

    Comment #4

    Isn’t this what a billionaire owner is for?

    He pumps hundreds of millions in for the love of the club and his love for the game?

    A bit rich to want to change the rules because our billionaire doesn’t spend much of his money on the club in comparison to other billionaires in the league.

    Big clubs spend big money.
    Stars put bums on seats.

  • Ruvio

    Oct 1, 2010 at 7:56 PM

    Comment #5

    It’s not madness at all Ed.
    For a man that’s worth several hundred billion pounds, he can afford to lose this amount, and more easily.
    Its not about business for him, he never said it was, he isn’t Abramovic. He just wants fun, and a football club he can be proud of. Money is literally no object

  • GeordieToon89

    Oct 1, 2010 at 8:13 PM

    Comment #6

    im sure he’s the same guy that wanted to buy us only for ashley to say he wanted close to £500million for he went and bourght city

  • pearceet

    Oct 1, 2010 at 8:26 PM

    Comment #7

    GeordieToon89 // Oct 1, 2010 at 8:13 PM

    Aye he was looking at l’pool us citeh (and Arsenal i think)

  • StuW

    Oct 1, 2010 at 10:10 PM

    Comment #8

    Well, half of the players are not worth what Shitty paid for them, or what Shitty pay them. It will catch them up eventually.

  • CT

    Oct 1, 2010 at 11:26 PM

    Comment #9

    Finally,ED good topic! Post 4 and 5 wake up! The rules change in 2012/2013! I`ll put this as simple as I can! Spend more than you earn BUST!!!!! I posted this few weeks ago, Arsenal model is the only way, I reiterated yesterday, Our Owner/directors/ management got it! Think level playing field! Turnover/expenditure???? Our kids , think future positive!!

  • Howay The Lads

    Oct 2, 2010 at 12:22 AM

    Comment #10

    BTW, Ed, brilliant new banner. If you change it in the future try and keep the Black&White effect. It looks better anyway, but it’s also obviously symbolic to us Toon fans.

    Keep up the good work 😀

  • cupiddstunt

    Oct 2, 2010 at 1:03 AM

    Comment #11

    A lot of sour grapes being tread here,

    If our man was splashing the cash we would not be complaining, the top clubs in the world have shown repeatedly that throwing money at top players is not all bad business hence the long term success of most of them.

    NUFC’s spending was far outside their income for a long time but I did not hear the doom and gloomers crying then.

    In fact I am miss-taken If our man was splashing the cash we would be complaining,,,,,, we would be complaining that fifa were just trying to spoil our fun and we should be allowed to spend whatever we wanted and everybody else was just jealous of our rich and generous owner much the same way most citeh fans are probably thinking just now.

    The bitterness on here is just because we have a billionaire that is not splashing the cash and he is right and we should be a lot better off at the end of it.

    A lot of you should try harder at hiding your jealousy and just acept the fact that we have to play within out mean now.

  • cupiddstunt

    Oct 2, 2010 at 1:09 AM

    Comment #12

    “ct” what a load of drivel what ever happened to “speculate to accumulate?”

    Risks have to be taken to advance,


    Oct 2, 2010 at 4:13 AM

    Comment #13

    cupid, of course you’re right, but logically, its not the way for football to be dictated. yeah, we’d love it if ashley was buying teves and the rest and we’d be putting up two fingers to anyone who complained, but for the good of english football, there should be some sort of control, otherwise we see stupid inflated prices for players and unless your follwing a team with a owner thats willing to pay those prices, you’re f**ked. i’m still not convinced with ashley, far from it, but he’s being responsible with the club. we were in dire straits and he’s supported us whether we like it or not. ultimately, i’d rather do it the way ashley’s doing it, than the way chelsea or man city have

  • baro

    Oct 2, 2010 at 5:31 AM

    Comment #14

    I believe Mike Ashley has a full plan set up for the future. We are rebuilding at the moment. No more big money useless buys like michael owen, we need to buy as much youngsters as possible for the future. We need those wonderkids. Phil Airey and Nile Ranger, Haris Vuckic, Aaron Spear, Shane Ferguson, Bradden Inman, Donaldson, all are key youngsters for the future. Yven Moyo is another one we just bought but never seen him play b4. Anyways i am sure Newcastle United know what they are doing. Credit to all the staff and especially Chris Hughton.

  • geoff777

    Oct 2, 2010 at 8:18 AM

    Comment #15

    We can put our balanced books in our empty trophy cabinet.

  • CT

    Oct 2, 2010 at 10:25 AM

    Comment #16

    ManCity/ Chelsea days are over. Cupid its not drivel, its fact and will be implemented by Fifa! 2012/13. Level playing field, but at least at last our management team seem as if they got a plan ,like the fact we nurture and develope our own kids. Scouting system seems much more effective. Pedro running the reserves/kids.future`s bright!!!

  • Ericles

    Oct 2, 2010 at 10:36 AM

    Comment #17

    True our club is not in such a financial lunatic asylum as Man City. However it is this way for NUFC because Ashley is basically a tight wad. I hope people recognise our circumstances are not because Ashley is some economic whizzkid or financial genius. He has a triple zip on his wallet – mouth too cos he rarely communicates with the fans.


    Oct 2, 2010 at 11:23 AM

    Comment #18

    Well Ed, you certainly opened a can of beans here!
    I would,nt be surprised if City,s arab pulls the plug on them in the next few years, then they will be in a right kef -fuffel ! Hope we beat them on Sunday, but maybe a point would do!!

  • geoff777

    Oct 2, 2010 at 1:36 PM

    Comment #19

    CT Wake up football is a money game … always has been always will be.

    Doesn’t matter what FIFA says or decides.

    Cash will always rule.
    Payments will just be made “off the books”.

    Still can’t wait for the day Ashley sells up and the Sports Direct crap comes down off SJP.

  • CT

    Oct 2, 2010 at 4:12 PM

    Comment #20

    Geoff777 obviously you decide FIFA policy???
    Cash outlay cannot exceed clubs income! FACT!!! Chelsea/ Manure/ Shitee will be restricted as will Barca/ Real etc. This is to stop clubs going to the wall and supporters being at the mercy of some billionaire who gets tired of their latest toy! ITS GONNA HAPPEN!! Get ova it!!!


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